Can The Apparel Group Buying Industry Usher In The Spring Of "Industry Integration"?

Groupon

The so-called group buying website is the network organization platform of group buying, that is, consumers who do not know each other. They gather funds with the help of the "gathering power of people" on the Internet, and increase their bargaining power with merchants so as to get the best price.

According to the principle of small profits but quick turnover and high price, merchants can offer group purchase discount below retail price and quality service that can not be purchased separately.

The development of apparel group buying industry

Over the past year, group buying websites have sprung up like mushrooms. Many people blindly start group buying websites. Unplanned expansion will inevitably lead to poor service. Once consumers feel that the ideal is very plentiful and the reality is very skinny, the group buying website is not far from the day of bankruptcy.

The famous websites such as Gao Peng network, wo Peng Wo net and handshake net have all closed down two or three line local stations and layoffs. At the same time, nowadays, in the group buying market where there are too few people in the market, similar to "the low threshold of entry to the market, the confusion of personnel management and the high cost of operation", the winter of the small and medium-sized group buying network has arrived.

"Consumers used to buy according to group buying items, and now they are in reverse," an employee said bitteringly.

Professional analysis, industry integration is inevitable, and small and medium-sized websites need to "kill" a blood route, we must innovate.

Since the first online group buying website in March 4th was launched online in less than a year, group buying has been upgraded from "100 regiment war" to "1000 regiment war".

But it is precisely because the growth rate of domestic group buying websites is amazing. Even though the group buying market is showing signs of shrinking at the beginning of this year, many investors are stared at the group buying.

But nowadays, the group buying industry is facing the dilemma of "further decline, three exhaustion".

Four reasons for not getting along

The threshold is low and the speed of expansion is too fast.

"Group buying market is limited, but group buying websites are flocking up, and the rate of expansion is too fast.

You think, the origin of group buying is such a huge consumer market in the United States, the total number of group buying enterprises is more than 500, and there are about four thousand or five thousand of the highest peak in China.

It is difficult to recover money if money is spent.

The rise of group buying industry has seen many people see business opportunities, but only those in the industry understand that small and medium-sized group buying websites want to eat things in the mouths of large group buying websites. Burning money, advertising and attracting talents are inevitable, resulting in the rapid growth of human and marketing costs.

Tim, a staff member who has worked for more than two years in the first ten group buying websites, admitted in a interview that layoffs and dismantling stations are "ready for winter jacket".

"Group buying websites are expanding too fast, and most of them are carrying out personnel optimization actions, mainly to reduce wage costs, while the two or three tier cities are closed.

To tell you the truth, all of this is to prepare for the upcoming winter of group buying industry! "Tim admitted," the actual profit of group buying website is "very small", "it is good to make money, and it is difficult to recover the cost than to go to the sky."

Expansion and extensive consumer loyalty is almost zero.

The speed and mode of expansion of most group buying websites are quite extensive, and the cost of operation has been greatly increased, resulting in unsustainable.

In addition to the high group buying market costs and the tight capital chain of many group buying websites, the enthusiasm of the investment community for group buying enterprises has cooled down.

Nowadays, consumers tend to be rational, making small websites difficult to "mix".

"The main difficulty now is that the membership of the group buying industry is low.

Previously, consumers were spending according to group buying items. Now group buying companies do projects according to consumer needs, and consumers' buying impulse decreases and returns to rationality.

The consequence of this is that consumer loyalty is basically zero.

The pattern is invariable. All websites are alike.

Ms. Zhou, an experienced group buying group, used to spend on the website of the group buying, such as the guest, the letter group, the Taobao, the pull hand, the Ledu special clothing group, and even the sales promotion mode and the after sale guarantee model.

She found that almost all websites are "carved out of a mold".

"Big websites are so alike, let alone those who have done Shanzhai ridiculous small group buying websites. Even those who are so slow are tired of it. How can small and medium-sized websites attract consumers to visit? Let alone make money!"